SGIP—Frequently Asked Questions

Incentive Information

The $/watt for every project varies with technology, system size, and system configuration. Updated statistics for each technology and to specific projects that have been completed or are in progress are listed on the Available Funding and Program Statistics page.

Customers must demonstrate that 75% of a project’s fuel source comes from a non-fossil fuel other than those defied as conventional in Section 2805 of the Public Utilities code that can be categorized as one of the following: wind, gas from biogas, digester gas, and landfill gas. The Renewable Fuel Project may not use more than 25 percent fossil fuel annually. In addition, application documentation must be submitted to demonstrate availability.

Customers are encouraged to pursue all available financial sources to make their project a reality. Different types of funding sources may affect the incentive paid out on a given project depending on the funding source (See Section 3.3.2 in the current SGIP Handbook).

Upon final approval of the incentive claim form documentation and completed field verification visit, PG&E will issue the incentive in the form of a check in approximately 30 days. Projects over 30 kW will receive 50% of the full incentive at this time, and the remaining 50% over 3 years in the form of a Performance Based Incentive (PBI).

Program Information and Eligibility

Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), the Southern California Gas Company (SoCal Gas), and the California Center for Sustainable Energy (CCSE*) administer this program throughout their respective service territories.

Yes. A customer who takes gas retail level service from PG&E at the facility, but electric service from a municipality may participate in the Self-Generation Incentive Program, subject to certain restrictions.

Yes, as long as the portion of load that is committed to such a program (an interruptible program, curtailable rate schedule, or any other state-agency sponsored interruptible, curtailable, or demand responsiveness program) is not displaced by self-generation receiving incentives through SGIP.

Yes, customers who qualify may participate in wholesale or retail sales of generated electricity. For the purposes of SGIP, customers are allowed to size their generating system up to 125% of annual consumption at the site; however, the SGIP incentivized capacity will be based on 100% of the annual consumption at the site.

Government agencies that are distribution customers of Pacific Gas and Electric Company are eligible, with the same restrictions and limitations on the size of systems and payments per year as other customers.

Application Information

Interested customers are encouraged to visit PG&E’s SGIP website to view and download copies of the current program handbook, application process overview, and program application forms. Please review these materials carefully for both customer eligibility and technology eligibility requirements to ensure a successful application.

Projects are eligible for incentives if the Host Customer or System Owner has not yet received authorization from the serving Electric Utility to operate the Project in parallel with the grid or if the system was authorized for interconnection within the 12-months prior to the submittal of the reservation application.

Selecting an Installer

Pacific Gas and Electric Company does not recommend nor endorse any particular equipment nor installers. There are, however, outside consultants and contractors available to assist customers evaluate whether or not on-site generation is right for them.

Interconnection & Metering

Applicants are encouraged to submit their interconnection application as soon as they receive their Conditional Reservation Notice from their Program Administrator. Please note that the project must be interconnected to the PG&E grid and the customer must receive a “Permission to Operate” Letter, prior to payment approval.

Yes, all systems are required to operate under a 10 year warranty, and projects over 30 kW receive a Performance Based Incentive (PBI) of 50% of the eligible incentive amount for meeting performance requirements over the first 5 years of operation. Customer is also responsible for data metering and monitoring (to be communicated via an approved Performance Data Provider (PDP)) for both PBI & Measurement & Evaluation.